Plains All American Expands Permian Pipeline Network

Pipeline operator Plains All American said it had expanded the capacity of its network in Texas, launching its Sunrise pipeline from the Permian to Cushing, Oklahoma, which boosted overall daily volumes to between 300,000 and 350,000 barrels, Reuters reports , citing the company’s third-quarter earnings call. Earlier estimates for the capacity of the expanded network had suggested daily volumes of 200,000-250,000 bpd of crude. The news should be very welcome for Permian producers who have been grappling with pipeline capacity shortages amid fast-growing production. The Sunrise pipeline’s total capacity is as much as half a million barrels daily. Its launch has already affected prices positively, lifting them from four-year lows. As of July, the pipeline capacity in the Permian was 3.1 million bpd, according to S&P Global Platts calculations , with production at 3.5 million bpd. However, there is a total 2.6 million bpd in new capacity coming online […]